Tuesday, March 8, 2011

Daily Forex Update: GBP/CHF

GBP/CHF is continuing the prevailing downtrend inside the high Quality Descending Triangle chart pattern, identified by Autochartist on the daily charts. The Quality of this chart pattern is rated at the 7 bar level as a result of the low Initial Trend (measured at the 1 bar level) and near maximum Uniformity and Clarity (both rated at the 9 bar level). High Uniformity and Clarity describe a well-formed chart pattern developing smoothly in accordance with the prevailing down-trend visible on the daily and the weekly charts. The first and the second connecting points of the lower support line of this chart pattern stand at the B level of the preceding ABC correction to the previous longer-term downward impulse. This level should be broken for the down trend to continue

Autochartist has also identified another high Quality chart pattern, Flag, on the 240-minute GBP/CHF chart. The Quality of this Flag is rated at the 8 bar level. The upper resistance trend line of this chart pattern can be used for opening sell entries in accordance with the prevailing downtrend, protected with a close stop-loss above.

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